New Structured Product From Standard Bank

Standard Bank Jersey Limited has launched their latest structured products offering, Quantum PLUS 9.

Quantum PLUS 9 is on sale until 14 September 2012 and is designed to return initial capital deposited along with a fixed rate of interest on half the deposit while the other half provides for stock market growth potential.

This product divides the original capital deposited equally between two deposits. Half of the money (the Quantum portion) is held for one year in a deposit account and matures on 26 September 2013 and the other half of your money (the PLUS portion) is held for five years in a deposit account and matures on 3 October 2017. The product is available in Sterling, Australian dollar or US dollar. Minimum deposit amounts are £10,000, AU$15,000 or US$15,000.

The Quantum portion pays a fixed rate of interest of 4% AER for Sterling and US dollar deposits and 10% AER for Australian dollar deposits. After one year you will receive back this half of the deposit plus interest at the relevant fixed rate.

The PLUS portion provides for a potential return on the other half of the deposit after five years based on the Market Performance of depositors' chosen stock market index. Sterling deposits are linked to the FTSE 100 and US dollar deposits are linked to the S&P 500 Index. At outset depositors can choose between a return of 50% of the Market Performance with a 5% minimum return, or a return of 60% of the Market Performance with no minimum return for these currencies. Australian dollar deposits are linked to the S&P/ASX 200 and at outset depositors can choose either a return of 70% of the Market Performance with a 5% minimum return, or a return of 80% of the Market Performance with no minimum return. Even if markets fall, all the PLUS portion alternatives are designed to return original capital invested.

Herman Wessels (pictured), Head of Private Clients Structured Products, commented: “Our structured products are typically designed for depositors who seek capital security and growth potential linked to the performance of a stock market index. Quantum PLUS 9 has been introduced following the success of previous Quantum PLUS issuances which had grown from strength to strength. We expect high demand for this attractive offering, particularly because the product is designed to deliver a minimum return regardless of Market Performance.”

He added: “Given the current economic uncertainties, now might be an ideal time to commit to a product which provides capital protection along with the opportunity to take advantage of any continued stock market recovery, at maturity. Quantum PLUS 9 may therefore be suitable for clients who believe that their chosen market will rise, but who seek capital protection if this proves not to be the case. Quantum PLUS 9 offers these benefits along with a fixed interest rate on the Quantum portion."